Why are your rates not the same as those I can find on the internet?

This is a question many loan officers get frequently.  Or the question is do you have a website that I can check rates on ?  It seems so simple, but it's really not.

Interest rates can vary daily, sometimes they will change more than once a day.  If the market is extremely volatile, they may change several times in one day.  Websites don't always keep up with frequent changes.

More important is that there are so many variables when we calculate an interest rates for each individual person that a website can't know all the variables.  Interest rates will change based on your credit score, the mortgage amount, the amount of down payment, the type of loan and the length of your rate lock.  There are other pieces that also go into the calculation, type of home – it makes a difference if the property is a condo or a single family home. 

As an example, a client with a 740 credit score and 20% down on a conventional loan will get a better interest rate than someone with a 740 score and 5% down.  That makes sense.  But if you have a 740 score and 5% down you may not get a rate as low as someone with a 700 score and 30% down.  There are several factors that make up mortgage rates these days.

Sometimes I will get a phone call and they will want to know what my interest rates are.  I start asking questions so I can give an accurate rate- not everyone will do that.  The other part of the interest rate is the cost – some loan officers may quote rates with an origination fee, others may not – that can definitely make a difference in your rate.  You also want to compare rates on the same day and about the same time of day.  If you call me today and check with another loan officer tomorrow, there is a good chance that my interest rate may have also changed!

The bottom line is to make sure you are getting accurate rates by giving accurate information – without a mortgage amount, a credit score, a closing date and type of property, you are not getting an accurate interest rate.  When I have clients that are thinking about locking but want to watch rates, I always tell them to call me or email me daily.  That way they know what is happening with rates and there aren't any surprises.

Leslie Vanderwerf,  NMLS ID#335509, American Mortgage & Equity Consultants, NMLS#150953 - EmailWebsite

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Currently a Senior Loan Officer at Cross Country Mortgage LLC, it's hard to believe I have been in the mortgage business for more than 25 years and have worked with Sharlene since 2000! I love sharing mortgage insights here each week and helping people finance their homes. Listening helps me find the right program for you!

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